Exim Bank may fund Indian nuclear projects

If the US company is involved in providing equipment and services for nuclear power project in India, the Exim Bank could look at such proposal, its Chairman and President James Lambright said.

The mandate of Exim, agency owned by US government,  is to promote exports out of United States.

Indicating that fate of Indo-US 123 agreement has no implication for such funding arrangement, Lamberight said financial support nuclear power projects was independent of the deal.

 

The official did not say if any Indian power company was in talks to secure funds for project to generate power using nuclear fuel.  Ex-Im Bank enters into picture (for funding) only after Indian company tie-up arrangement with US-based entity for equipment and services.
 
He said, funding support from Exim in US currency costs much less than rate at which rupee loans as well as international commercial loans contracted. The funding from Exim is on the risk is of the US government while commercial financing happens with India risk.

Meanwhile, the agency said that it will provide $6 billion to Indian carriers to aircraft financing. Some of the airlines expected to use line of credit are Air India and Jet Airways.

Exim bank's outstanding exposure to India is about to $3.5 billion, about 6 per cent of its balancesheet. This includes the credit  to airlines as well as Reliance Industries for a refinery project in Gujarat. "We are interested to provide funding to more projects in India and hope the country becomes largest market for us," he said.

It has also established a funding facility of $2.2 billion for eight Indian financial Institutions including State Bank of India, Punjab National Bank. These Indian entities will inturn lend these funds to infrastructure projects.